The Society of Motor Manufacturers and Traders (SMMT) has reported that 2025 was a constrained year for UK vehicle manufacturing due to plant restructuring, trade uncertainties, and economic weakness. However, car production growth in December indicates a positive transition for 2026.
Electrified vehicles (EVs) accounted for a record 41.7% share of cars produced last year. With production ramping up in Sunderland and six new EV models scheduled for 2026, independent analysis suggests total output could reach 824,000 units this year, with a potential rise to one million by 2027. This recovery depends on the government’s Industrial and Trade Strategies, backed by £4 billion in transformation funding.
Key priorities for the sector include reducing energy costs and supporting domestic supply chains. To safeguard global partnerships, the SMMT recently joined a Department for Business and Trade mission to Pune, India, for the Symposium on International Automotive Technology (SIAT) to expand overseas opportunities.
Innovation remains a central focus, particularly in self-driving technology. Waymo is set to launch automated taxis in London this September, marking the first such deployment in Europe. This development utilizes the UK’s advanced regulatory framework to transition automated mobility into a real-world service. By aligning industry ambition with government innovation policy, the SMMT aims to make the UK more attractive for future investment in the EV and autonomous sectors.
